Okay, strike SD from the comments, but the situation here is similar to the one in LA, SF, Seattle, NYC, and probably a few other places that combined, are bound to have a big effect on the US economy. I’m still not convinced that buyers are going to be lining up in droves to buy those properties at 25% off. Maybe in Austin, maybe in Charlotte. Certainly, the loss of the interest from the aggregate of the loans is not that big, as you point out. But what about the loss to the population that has seen their “savings” disappear overnight? What about the lost jobs in construction, mortgage lending, real estate, etc… I don’t know that we’ll see a depression, but I think we may see a realignment of national priorities towards more productive activities than building McMansions in Amarillo…
